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Why Bloom Energy (BE) Outpaced the Stock Market Today

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Bloom Energy (BE - Free Report) ended the recent trading session at $90.29, demonstrating a +2.6% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.28%.

The developer of fuel cell systems's stock has climbed by 60.26% in the past month, exceeding the Oils-Energy sector's loss of 0.05% and the S&P 500's gain of 4.83%.

The upcoming earnings release of Bloom Energy will be of great interest to investors. In that report, analysts expect Bloom Energy to post earnings of $0.07 per share. This would mark year-over-year growth of 800%. Meanwhile, our latest consensus estimate is calling for revenue of $411.09 million, up 24.42% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.48 per share and revenue of $1.77 billion, indicating changes of +71.43% and +20.37%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Bloom Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 10% higher. As of now, Bloom Energy holds a Zacks Rank of #3 (Hold).

Digging into valuation, Bloom Energy currently has a Forward P/E ratio of 183.97. This represents a premium compared to its industry average Forward P/E of 20.58.

It is also worth noting that BE currently has a PEG ratio of 6.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Alternative Energy - Other industry was having an average PEG ratio of 2.33.

The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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